Cable companies have shown no signs of concern over cord cutting so far and it’s easy to see why: Even customers who ditch their home video services will keep paying cable companies for broadband access. But TechHive notes that the cord cutting trend might finally be showing up on cable companies’ radars now that it’s growing to a more substantial size. A quick rundown of the numbers: Comcast has added 917,000 broadband subscribers this year but has lost 348,000 pay TV customers; Charter added 86,000 broadband subscribers but lost 27,000 pay TV subscribers; and Time Warner Cable saw its broadband subscriber numbers rise by 1.7% while seeing its pay TV subscriber numbers shrink by 6%. More →
Whenever you see an industry with high profits and low customer satisfaction ratings, it’s a good bet that it doesn’t face the same kinds of competitive pressures that most industries deal with on a regular basis. Such has certainly been the case with the cable industry, whose largest two vendors don’t even compete with one another in any major markets. And as Ars Technica reports, cable companies could dramatically boost their services’ speeds starting today if they wanted to… but they won’t because they aren’t facing any competitive pressure to do so in most markets. More →
As we’ve observed before, cable companies are not popular in the United States. Various surveys have shown that cable companies have even lower customer satisfaction ratings than airlines or that pay TV companies account for six of the seven worst-rated companies in the U.S. And now Light Reading has conducted a poll of its readers that shows what lots of other polls have shown in recent years: People still really don’t like their cable providers. More →
Cord-cutting has become even more of a headache for pay television providers over the past year. The Wall Street Journal points us to a new report from researchers at MoffettNathanson estimating that the pay TV industry lost 113,000 subscribers in the third quarter of 2013, thus capping off what analyst Craig Moffett calls the “worst 12 month stretch ever” in the industry’s history. The biggest losers in this scenario were unsurprisingly the cable companies that have been reporting massive subscriber losses over the past year, highlighted by Time Warner Cable announcing that it lost a stunning 300,000 pay TV subscribers last quarter. Telcos such as Verizon and AT&T and satellite companies such as Dish have fared better and have reported upticks in market share even as the cable companies continue to bleed subscribers, MoffettNathanson finds.
Congress is America’s least-liked political institution but it could score some points with the public if it takes on one of America’s least-liked industries. The Washington Post reports that Senator Jay Rockefeller (D., WV) has introduced new legislation aimed at reining in cable companies’ ability to dictate what consumers can watch and what channels they’re required to buy as part of their bundling packages. Among other things, the bill would bar cable companies from entering into deals with broadcasters to keep their live content from Netflix, Hulu and other digital streaming services; would shore up regulations against ISPs degrading competing video services’ traffic in favor of their own; and it would give the Federal Communications Commission the power to monitor broadband billing practices. More →
Cable CEOs don’t seem to understand why more and more customers are shunning their pay TV services. The Wall Street Journal reports that Charter Communications CEO Tom Rutledge said that he’s been “surprised” recently by the number of subscribers who are opting to go only with broadband services and are forgoing his company’s pay television options. Rutledge said that he thinks customers are shunning pay TV because Charter’s video service still needs to be improved and not because they’re opting to just get a broadband connection and watch Netflix and Hulu. Of course, Charter isn’t the only cable company to see a rise in cord cutting as Time Warner Cable last quarter announced that it had lost a whopping 300,000 pay TV subscribers while Comcast has reported losing tens of thousands of pay TV subscribers this year.
Do you like being able to stream Netflix movies at home without worrying about going over a monthly broadband cap? Well too bad — National Cable and Telecommunications Association chief Michael Powell wants to take even this simple joy away from you. Multichannel News reports that Powell this week said that he was encouraging more cable companies to start implementing usage caps on their services before cable customers get too comfortable with the idea of limited data. In fact, if there’s one criticism that Powell has of the cable industry it’s that they’re not “moving with some urgency and purpose” toward hitting broadband customers with the same data caps that wireless customers have come to know and love. More →
If you’re like a lot of people, then you may be less-than-happy with your cable TV provider. The good news is that you can now watch a lot of your favorite televisions shows without subscribing to a monthly pay TV package. Yes, we’re talking about cord cutting, the small but growing trend of ditching pay television services in favor of watching as much TV as possible over the Internet. Forbes contributor Amadou Diallo has put together a guide to help all first-time cord-cutters get through life without cable TV and it’s a terrific resource for any frustrated Comcast or Time Warner Cable customer looking to make the switch. More →
Netflix has been the movie and TV streaming service to beat for years, but the company continues to explore potential avenues for expansion. Bloomberg reports that Netflix has been offering to partner with cable companies for two years, but has yet to make much headway. Two European cable companies, Virgin Media in the U.K. and Com Hem AB in Sweden, have both decided to include Netflix as an app on TiVo set-top boxes, but U.S. companies have yet to accept the partnership. More →
It may take a while but it seems that the pay TV business is gradually going the way of dial-up Internet. Business Insider points us to the latest numbers from research firm SNL Kagan showing that cable providers lost 1.8 million pay TV subscribers in the second quarter of 2013. SNL Kagan’s research is just the latest evidence that Americans are increasingly becoming unwilling to pay money for television services when they can instead subscribe to Netflix and Hulu and watch shows over their broadband connections. To get some perspective on this, consider that 1 million cable TV subscribers ditched their pay TV services throughout all of 2011 — the cable industry is now losing almost twice that many over the span of just a quarter.
This may be surprising, but most Americans really don’t like their cable companies. CNET reports that research firm Temkin Group has just released a massive customer satisfaction survey of around 10,000 American consumers and has found that pay TV companies account for the six of the seven worst-rated companies in the United States. Charter Communications, Time Warner Cable, Cox Communications and Cablevision all had customer satisfaction ratings of below 30% while Comcast and Verizon’s pay TV services both had ratings of exactly 30%. The Temkin survey follows a survey earlier this year from the American Consumer Satisfaction Index that showed American ISPs, led by cable providers Comcast and Time Warner Cable, had the lowest customer satisfaction of any industry in the United States, including airlines and health insurance companies.
Yes, cable companies are still making money hand-over-fist on their pay television services but they’re doing it by squeezing more revenues out of a shrinking customer base. A new article from USA Today suggests that cable companies may not be able to keep this game up forever, however, and cites a “perfect storm of online video, new devices, rising prices and programming blackouts” that is “eroding traditional pay-TV providers’ grip on the living room.” USA Today reports that a recent survey from The Diffusion Group research firm shows that 7% of cable TV subscribers say they’re “highly inclined” to cancel their service over the next six months. More →
Believe it or not, cable companies are actually trying to think of ways to lower their customers’ bills. The Wall Street Journal reports that cable providers have started listening to customer complaints that their cable bills are being driven up by heavily subsidized sports stations that they never watch. The reasons cable providers are considering abandoning sports networks are fairly obvious: As the Journal notes, “sports channels such as ESPN and regional sports networks account for 19.5% of fees paid by cable and satellite operators,” despite the fact that the audience for sports stations amounts “to about 4% or less of households on average.” With cord cutting becoming an increasingly prevalent phenomenon, it’s not surprising that cable companies are trying to get more creative in their ways to retain pay TV customers and sports stations look like a good early candidate for the chopping block.